Ongoing vigilance necessary to comply with tax-related provisions

Employers face a variety of tax-related compliance requirements under the Affordable Care Act (ACA). Perhaps the most notable is the shared responsibility provision, commonly referred to as “play or pay,” which applies to large employers. It had been scheduled to go into effect in 2014, but it has been deferred to 2015 (along with certain information-reporting requirements). In addition, some “transitional relief” will be available in 2015. For example, large employers with plan years that don’t start on Jan. 1 can begin play-or-pay compliance at the start of their plan years in 2015.

Large employers should use this extra time to ensure they offer their full-time employees the coverage necessary to avoid penalties — or decide that they’d prefer to risk the penalties. (Keep in mind that health insurance premiums are deductible; the play-or-pay penalties are not.) Here’s a closer look at some key taxrelated ACA provisions and IRS guidance. Additional provisions and details may apply, so consult your tax and benefits advisors to determine exactly how your organization will be affected.

Read more by downloading our newsletter:  Affordable Care Act: Large Employers (pdf)